West Coast Grocery Co. v. Stinson

Citations

• 13 Wash. 255
• 43 P. 35
• 1895 Wash. LEXIS 85

Syllabus

<p>FORECLOSURE OF CHATTEL MORTGAGE — TRANSFER TO COURT — PLEADING — FRAUD — MORTGAGE OF FIRM CHATTELS BY ONE PARTNER.</p> <p>A complaint in an action by a creditor of a chattel mortgagor, under Gen. Stat., § 1656, to transfer proceedings for the foreclosure of the mortgage to the superior court, in order to contest the mortgage on the ground that it was fraudulent as to creditors, is demurrable, when it does not appear from the complaint that plaintiff was a creditor at the time of the execution of the mortgage.</p> <p>The fact that a creditor, although secured, takes additional security from his debtor, does not constitute a fraud as against other creditors.</p> <p>One partner possesses the right to execute a chattel mortgage in the firm name for the purpose of securing partnership debts; and this is true, though the notes to be secured were signed by the individual members and not in the firm name.</p> <p>A chattel mortgage which is fair on its face cannot be impeached for fraud, unless the facts relied on to constitute fraud are pleaded, a mere general averment of fraud being insufficient.</p> <p>In order to entitle a creditor to the transfer of proceedings for the foreclosure of a chattel mortgage to the superior court, he must show that a defense exists, either in whole of in part, and that he has such an interest in the subject matter as entitles him to resist the foreclosure or assail the mortgage.</p>